PBOC Shows Strongest Hand on China's Shadow Banks

Inaction by Regulators Hampered Central Bank's Efforts, Analysts Say

SHANGHAI—China's move to step up regulation of its shadow-banking system highlights the weakness of its financial regulators, which have failed to slow the country's lending boom even as top government officials raised concerns.

The lack of strong action by China's securities and banking watchdogs to limit the growth of lending outside...